Gold intraday trading analysis for 20 May 2011, we recommend to trade long in Gold above 1497 level for targets as 1503 and 1508. Stop loss must be placed below 1493 level.
Why to trade long on Gold : Gold has been consolidating for may sessions, as this consolidation cannot be ruled out for longer period of time we expect the positive breakout targeting the 1510 zone,also the strong USD can be held responsible for selling pressure in gold. When we look at charts we see that gold will continue its long term trend as the technical indicators are in favor of trade on daily chart. We will be looking for buying opportunity as long as gold remains above the 1465 level. Trend is likely to be bullish for today’s trading session.
Near term trend is now consolidation and medium term trend will still remain bullish.